Home Loan FAQ's

Q. How much will my closing costs be?

A. Typical closing costs are in the range of 3 – 5% of the purchase price. However, these cost do vary by lending program and by a consumer’s credit worthiness. For a complete explanation of Kaw Valley State Bank’s closing costs please contact one of our home loan specialists.

Q. What is Title Insurance?

A. A Title Insurance company completes extensive research into public records to determine if anyone other than you has an interest in the property. Title insurance protects you from loss if someone contests the title to your property in legal action or if there is a title defect that cannot be eliminated.

Q. Why do I need an inspection?

A. If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they can be addressed BEFORE the deal is closed.

Q. What is PMI?

A. Private mortgage insurance (PMI) is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private companies and is usually necessary when your loan to value ratio is greater than 80%.

Q. How is PMI calculated?

A. According to the Mortgage Broker’s Association, PMI typically amount to about one-half of one percent of your mortgage amount annually. On a $200,000 mortgage, you may be paying approximately $1,000 per year for PMI.